TVS Motor Co on Thursday announced its entry into the Central American region in countries such as Guatemala, Honduras, El Salvador, Costa Rica and Nicaragua.
TVS Motor Co on Thursday announced its entry into the Central American region in countries such as Guatemala, Honduras, El Salvador, Costa Rica and Nicaragua. As part of this plan, TVS Motor has entered into an alliance with Guatemala-based MASESA (Mayor Servicios Socieda Anonima) for distribution of two- and three-wheelers and develop dealerships, TVS Motor joint managing director Sudarshan Venu said.
“Currently 22% of TVS Motor’s total revenue comes from exports and we want to significantly increase the share of exports in the company’s total revenue in the years to come,” he said. TVS Motor, through MASESA, will set up 600 dealerships over the next 12 months and expects to sell around 10,000 units a month. It aims to capture 25% market share in the Central America region, which has an annual size of $250 million.
According to Sudarshan, the two-wheeler market in Central America is similar to India, with the exception of the taxi segment that is currently dominated by Chinese players. In response to a query, th joint MD said, “The tie-up will start with distribution of TVS vehicles. Presently we have no plans of setting up a manufacturing unit in Central America but we will explore and examine once scale in the market is achieved. MASESA is to handle marketing, sales, distribution, service and spare parts.”
Like the Gulf region, Central American countries are integrated and hold huge opportunity for TVS. It had recently announced a capital expenditure of Rs 500 crore for capacity expansion at its plants across the country as well as product development.